This has made it an important market town, with major industries including cotton and textiles, peanut oil manufacture and brewing.

The town grew initially from revenue generated from passing merchants that took goods from the region across the Sahara and the Mediterranean to Europe.

[4] The Marché Depot is located near Parakou Railway Station around numerous hotels and sells mostly food but also calabashes and baskets.

The market consists of a collection of grass huts, and specialises in beef and pork and local millet beer known as choukachou or simply "chouk".

It gives the Backbone Project a strategic position for imports and exports to neighbouring countries, notably Burkina Faso, Mali, Niger, Nigeria and Togo.

[6] As a market town attracting many people as a trading and stop-off point, Parakou has a large mix of African ethnicities, including Fula, Dendi, Somba, Fon, Mina, Bariba, Djerma, Yoruba (of the Nago tribe), Hausa, Kabrais, Warma,[8] and Tuareg.

[citation needed] The commune of Parakou contains the following villages:[11] Amawihon, Bakaga, Bakounkparou, Bakounourou, Baperou, Bereyadou, Borarou, Darou Kourarou, Debregourou, Dokparou, Douerou, Forane Kparou, Gagbebou, Ganou, Ga Yakabou, Gommboko, Gorobani, Gouforou, Goutere, Guema, Guererou, Guinrerou, Kaborokpo, Kabro, Karobouarou, Kipare, Konkoma, Koumerou, Kperou Guera, Moundouro, Nekinparo, Nikikperou, Ouroungourou, Pepekino, Pepepeterou, Sanro, Senouorou, Sokoumeno, Sokouno, Sonoumo, Sourou, Suinrou, Tabayorourou, Tankaro, Tankaro Ga, Teougourou Gando, Tian, Tinekonparou, Tora, Tourou, Wansirou, Weria, Wore, Worora, Yakassirou Parakou is home to one university, the University of Parakou, founded in 2001.